eBay dropping Paypal as primary payment option.

[mudcatsfan]

So, wondering if you could buy during this brief downspell before it gets announced who might snap them up, I figured I'd check the price History of Paypal.

Shocked to see that Paypal sat at sub $40 for the last 5 years, then all of a sudden from just the last 12 months has gone from $40 to $85.

So jumping in at 80 doesn't feel like there's much upside if it was worth less than 40 for half a decade.

[cladner]

32 minutes ago, mudcatsfan said:

So, wondering if you could buy during this brief downspell before it gets announced who might snap them up, I figured I'd check the price History of Paypal.

Shocked to see that Paypal sat at sub $40 for the last 5 years, then all of a sudden from just the last 12 months has gone from $40 to $85.

So jumping in at 80 doesn't feel like there's much upside if it was worth less than 40 for half a decade.

paypal only went public (again) in July 2015 after being acquired by ebay in 2002 and then getting split off.  it's only been traded since July 2015.

it was stuck in the low 30s-40 range from 2015 when it split from ebay until early  2017  when it caught fire because of its massive growth and increasing number of platforms, especially mobile.

the stock has room to run and once people get over the fact that paypal will be stop being offered as pay format on ebay in 2023, the stock will resume its upward climb.  this is likely the best buyin opportunity we are going to get again.  if you bought in after hours last  night, you are already up 5%. 

 

i would imagine that even if its not the "preferred" pay format on ebay, most people are familiar with paypal and more importantly , already have accounts linked so I sort of doubt this will have material impact on paypal's revenue.  ebay claims that you won't have to have an Adyen account and that it will be completely "integrated" which sounds like a bunch of crap to me - how are they not going to have all your financial information to create an Adyen account?

would not be surprised at all if Visa or Mastercard tries to buy paypal which would send the stock through the stratosphere.

 

Edited February 1, 2018 by cladner

[Val-E]

The word from Paypal CEO:

EBay was restricted for a period of time from having another payment service," Rainey said. "At the same time, we were restricted from going out and partnering with some of their competitors — some of the largest and fastest-growing marketplaces in the world."

That restrictive deal was always slated to end, Rainey said, allowing eBay to partner with Adyen — and letting PayPal explore partnerships with other companies.

EBay represents 13 percent of PayPal's total payments volume, according to company filings.

But that revenue sector has grown at an average rate of just 4 percent during the last 10 quarters — compared with an average growth rate of 23 percent for the rest of the business, Rainey said.

Rainey declined to comment on partnership discussions but said "it's fair to say that we talk to all the major companies."

[jaisonline]

https://www.usatoday.com/story/tech/news/2018/02/01/paypal-shares-plunge-after-ebay-splits-payment-provider-favor-adyen/1085940001/

EBay is dropping PayPal; if you're a customer, here's what you need to know

Brett Molina, USA TODAY  Published 8:45 a.m. ET Feb. 1, 2018 | Updated 2:24 p.m. ET Feb. 1, 2018

CEO Daniel Schulman says customers expect more today. Time

Shares of PayPal sunk 7% Thursday after its former parent revealed it would no longer use the payments service as its primary processing partner.

Along with its earnings report after hours Wednesday, eBay announced a deal with processor Adyen to become its primary partner. The company said PayPal will continue to remain a payments option for eBay buyers during checkout, at least for a few years.

When it starts

EBay said it will start the transition in payments processing later this year, with the majority of its marketplace customers using the new partner by 2021.

The e-commerce pioneer said the change will lead to lower costs for sellers, along with more options and a more integrated checkout experience for buyers. Netherlands-based Ayden also provides payment services for Netflix, Spotify and Uber. Ebay shares rose 15% Thursday after a better-than-forecast outlook. 

"After careful consideration, we believe that we can offer a more seamless experience while giving buyers and sellers more choice for payment and payout options," President and CEO Devin Wenig said during eBay's quarterly earnings call.

What about PayPal?

EBay said PayPal will remain "an important partner," with a deal keeping the service as an option to make purchases in the marketplace until July 2023.

The online marketplace acquired PayPal in 2002, spinning it off in 2014, partly due to pressure from activist investor Carl Icahn, who had long advocated for a split of the two companies.

Follow Brett Molina on Twitter: @brettmolina23.

Read or Share this story: https://usat.ly/2FAxX3o

[rcdb1984]

Fingers crossed our margins will increase given the...what? 13% taken off the top of each sale between the two before shipping?

Edited February 1, 2018 by rcdb1984

[Val-E]

9 minutes ago, rcdb1984 said:

Fingers crossed our margins will increase given the...what? 13% taken off the top of each sale between the two before shipping?

I guess they will reduce the payment fee by 2 point and increase ebay´s commission by 2 points. The chances of paying less overall are nil to subzero.

[minicoopers11]

11 minutes ago, rcdb1984 said:

Fingers crossed our margins will increase given the...what? 13% taken off the top of each sale between the two before shipping?

Only 3% of that, for US sellers, was Paypal anyway. I doubt we'll see lower fees.

[jaisonline]

every few years, the decisions by the suits at ebay leave me dumbfounded. e.g. buying skype, the entire seller feedback process.  now getting rid of paypal.    i get the desire to have a fully internal checkout with payment system (ala amazon) but couldn't ebay have done that with paypal?    i doubt we (sellers) will see any savings as ebay will need to recoup the adyen cost. 

https://www.cnbc.com/2018/02/01/why-ebay-abandoned-paypal-for-a-smaller-european-competitor.html

anyway, here are some of their customers.

[whoisbiggles]

Way to early to pass judgement on this move by eBay.

Doubt I'll see a reduction in overall fees.

Be interesting to see PayPal's response

[Val-E]

2 minutes ago, whoisbiggles said:

Be interesting to see PayPal's response

They already have. "We are seeing someone else too, ok? You don´t need to know his name, right but he´s younger than you and is growing much faster. Oh, can you lend me 2 quid for the bus? I´ll pay you back on Monday."

[ravenb99]

starting over business relationships that have been built the last 19+ years is the most aggravating thing to me.    Everything was centralized,  then they wanted to spin off,  now they want to dump all together.  Confusing when you built the brand names and they have been synonymous within each other for the last nearly 2 decades.  Paypal had some rough customer service spurts during the middle years but they have been rock solid for me the past 5-7 years as far as customer support and services offered for large accounts goes.   Be interesting to see what comes of this after it is all unveiled but I am not optimistic.    

[Val-E]

7 minutes ago, ravenb99 said:

starting over business relationships that have been built the last 19+ years is the most aggravating thing to me.    Everything was centralized,  then they wanted to spin off,  now they want to dump all together.  Confusing when you built the brand names and they have been synonymous within each other for the last nearly 2 decades.  Paypal had some rough customer service spurts during the middle years but they have been rock solid for me the past 5-7 years as far as customer support and services offered for large accounts goes.   Be interesting to see what comes of this after it is all unveiled but I am not optimistic.    

I guess Ebay want to improve the experience for hackers as now they will have access to funds as well as ebay accounts under the same roof.

[Emvisawthatswho]

Found this on the Adyen website



To me looks like Adyen offers many other payment methods under one roof. Not limited and to me, could be a positive as buyers can use Apple Pay, Samsung pay, among many other payment methods including PayPal through Adyen.

[Average Guy]

This will only help ebay and no one else. We may see a 1% drop in transaction fee compared to PayPal   just for the appearance of merit, but that will eventually disappear . Do you think that a company who charges 12% of actual shipping costs,  a service (shipping ) in which they have no participation, is going to to lower any of their fee structure?  Have they ever lowered fees before or stopped trying to scalp sellers at every turn? C'mon...

I thought ebay had run out of creative scams and lies  to make their profits go up, short of actually charging members to sign up or purchase, but I guess I  was wrong.

[feed]

Transitions are where the opportunities reside. 
Stratification of existing market dominant players only benefits them.   If paypal upped their cut to 5%, what you going to do about it.  
    
So you adapt, become an early adopter of the new payment method and whilst ebay is trying to build that market share / convert users and has some marketing budget to throw at it to incentivise, you capitalise.  Move to the new payment method and only pay FVF’s fees (*for a limited time only), 2* points on all transactions made through the new portal, or whatever.  

If this is a 3 year transition plan, they’re going be aggressive with hitting those conversion figures.  
 

[fuzzy_bricks]

Looks like Paypal will still be an option through 2023.

http://www.businessinsider.com/paypal-and-ebay-finalize-new-agreement-2018-4

 

[Halfrig]

A non-subscription/ad blocker friendly link:

https://www.cnbc.com/2018/02/01/why-ebay-abandoned-paypal-for-a-smaller-european-competitor.html

 

[Guest TabbyBoy]

I don't care as I've been using Worldpay to accept debit/credit cards at less than half the fees of PayPal. I also offer a 2% discount to those paying by BACS and a 5% discount for cash. PayPal are no less greedy than eBay and deserve to get hit. Being VAT registered now has reduced my eBay FVF from 10.8% to 9% and my accountant does my eBay VAT returns as a freebie ?

[fuzzy_bricks]

So I ran into eBay managed payments today for a couple sellers, and it wanted me to put in my contact info rather than just sign into PayPal.  Definitely not more convenient from this buyer's perspective.  At the top of the checkout screen it has a button that says, "Looking for PayPal", and they'll be implementing that sometime this summer.

Anyone here using eBay's payment system?  Pro and Cons?

[Darth_Raichu]

1 hour ago, fuzzy_bricks said:

So I ran into eBay managed payments today for a couple sellers, and it wanted me to put in my contact info rather than just sign into PayPal.  Definitely not more convenient from this buyer's perspective.  At the top of the checkout screen it has a button that says, "Looking for PayPal", and they'll be implementing that sometime this summer.

Anyone here using eBay's payment system?  Pro and Cons?

We'll get used to it when Paypal is completely removed from eBay.

I did not opt in last year when I saw the offer so I am just going to wait to get converted with the rest of eBay.

[$20 on joe vs dan]

On 2/1/2018 at 4:02 PM, ravenb99 said:

starting over business relationships that have been built the last 19+ years is the most aggravating thing to me.    Everything was centralized,  then they wanted to spin off,  now they want to dump all together.  Confusing when you built the brand names and they have been synonymous within each other for the last nearly 2 decades.  Paypal had some rough customer service spurts during the middle years but they have been rock solid for me the past 5-7 years as far as customer support and services offered for large accounts goes.   Be interesting to see what comes of this after it is all unveiled but I am not optimistic.    

Ebay no doubt sees future growth tied to intl markets and Ayden (like many european companies) seem much better aligned to the international marketplace.

in this arena...ebay is the one providing the unique product (based on scale) and unfortunately for Paypal...they provide a service that has fierce competition. W/ the cost of shipping going up and the growth of local marketplace options...and the mere fact most are too lazy to link bank accts to yet another option..Paypal seems still viable...but I have no idea how reliant to Ebay their financials are.